FULL-WIDTH BANNER WEBSITE AD - American Indian OIC

Higher Ed for American Indian Increases Employment Rate But Does Not Close Earnings Gap

Staff Reporter
Share :
Facebook
X
FULL-WIDTH BANNER WEBSITE AD - American Indian OIC

A postsecondary degree for the American Indian and Alaskan Native (AIAN) populations increases employment rates and labor force participation but reaps smaller gains in earnings compared to their white counterparts. According to a working paper published by St. Catherine University economics researchers and the Federal Reserve’s Center for Indian Country Development (CICD), increases in employment associated with a bachelor’s degree or higher are 5 percentage points more among AIAN than whites, however the earnings premium with that degree is 8 percent less for the AIAN community.
In addition, while AIAN complete associate degrees at similar rates to white Americans and are even more likely to have some college experience, they are far less likely to have a bachelor’s degree or higher.

The study examines American Community Survey data from 2008-2016 and drills down into how postsecondary education impacts employment and earnings by race, age, gender and geography. Sample data includes 209,955 respondents who identify as AIAN, and 10,889,055 non-AIAN workers aged 25-55 years. AIAN respondents are further broken down into racial/ethnic subgroups including those who identify as AIAN only (100,440), AIAN-Hispanic (33,967), and AIAN and at least one other race (75,548).

“There is a substantial amount of research out there that examines returns to education and racial disparities in the labor market, but because the AIAN population is often lumped in the ‘other’ category, less is known about how returns to higher education might be different for them specifically,” said Kristine West, PhD, Associate Professor of Economics at St. Catherine University.

There are sizable labor market disparities. With similar education and experience, AIAN earn, on average, 15 percent less and have 6.2 percentage points lower employment rates than white Americans. Interestingly, AIAN who identify as multi-race have a smaller earnings gap at 11.5 percent. To illustrate the findings about differential returns to higher education, study authors used the data to develop a hypothetical case study where postsecondary education and completion rates for AIAN were increased to match that of white Americans and found that the white-AIAN labor market disparities would still be largely unresolved.

The differential returns to higher education was more pronounced in urban areas than rural, which validates previous research that finds returns on education are more similar for rural workers than urban workers.

Staff Reporter,
Environment & Politics
Elaine Strongbow is a member of the Leech Lake Band of Ojibwe and has covered environmental and tribal sovereignty issues for The Circle since 2019. She is a graduate of the University of Minnesota School of Journalism and was a 2023 fellow of the Institute for Nonprofit News.

This reporting is made possible by readers like you.

The Circle is a nonprofit newsroom with no tribal affiliation, no corporate ownership, and no paywall. Independent Native journalism depends on reader support.

Advertisement

Fraud Campaign - MN DHS

Recent Stories

Advertisement

Fraud Campaign - MN DHS

More From News

Native American Community Clinic to Open New Health Campus in Minneapolis

MINNEAPOLIS — The Native American Community Clinic (NACC) will open its new health campus to patients Tuesday, September 15th, marking a major expansion of culturally grounded health care and community services for Native families in the Twin Cities. Located along the American Indian Cultural Corridor in south Minneapolis, the new clinic is part of an […]

20th Annual Gathering for Our Children & Returning Adoptees Powwow Set for Nov. 7

The 20th Annual Gathering for Our Children & Returning Adoptees Powwow will take place Saturday, November 7th, 2026, at the Minneapolis American Indian Center. The annual gathering has long served as a place of welcome, healing, and reconnection for Native adoptees, formerly fostered individuals, birth relatives, and families. The gathering was established in 2003 to […]

Navajo Athlete Shiyazh Pete Released From The Dallas Cowboys

By Ailene Bass DALLAS, TX. —This past week, Shiyazh Pete was one of the hopeful rookies who played for the Dallas Cowboys in their preseason as an offensive lineman. His agent, Brett Tessler, tweeted on Sunday that Shiyazh Pete had been released from the Cowboys. The disappointment quickly reached across football and Native fans alike […]

FULL-WIDTH BANNER WEBSITE AD - American Indian OIC

Search The Circle

Find stories, columns, events, and magazine features.